### Algebra

# You deposit $600 into a savings account that earns 3% interest compounded annually. Find the balance after 5 years. Round to the nearest cent.

Holt McDougal Larson Pre-Algebra Common Core Edition page 785 number 36

Holt McDougal Larson Pre-Algebra Common Core Edition page 785 number 36

Deposit=$600.00

Interest 3% yearly

Find balance at year 5

=(Original deposit)(3%)=interest earned then add to balance for next year

=(600)(.03)=6.00 first year interest

=(606)(.03)=18.18 2nd year interest

=(624.18)(.03)=18.72 3rd yr interest

=(642.90)(.03)=19.29 4th yr interest

=(662.19)(.03)=19.86 5th yr interest

total balance end of 5th year=682.05

=(balance)+(interest earned each year)